FOREX-Dollar index adds gains after poor U.S. note sale

NEW YORK, Feb 26 (Reuters) – The U.S. dollar reached a fresh one-month peak against a basket of currencies early on Thursday afternoon as U.S. yields rose to session highs after poor demand at an auction of $ 29 billion of seven-year Treasuries notes .

The dollar index advanced to 95.357 shortly after the seven-year debt auction before easing to 95.301, which was still up 1.15 percent on the day.

The greenback posted further gains against the euro as the single currency fell to a one-month low of $ 1.11840. The euro was last down 1.5 percent on the day at $ 1.11930.

(Reporting by Richard Leong; Editing by Lisa Von Ahn)